FDD Items 3 & 4 · 2022 filing
Renew Crew litigation history
What Renew Crew disclosed about lawsuits, arbitrations and bankruptcy in the 2022 Franchise Disclosure Document. Item 3 lists the material legal actions a franchisor must report; Item 4 covers bankruptcy. This is the franchisor's own disclosure, not a court record, and not legal advice.
Items 3 & 4 at a glance
What the filing discloses
- Cases disclosed
- 8
- Item 3, as counted in the filing
- Largest disclosed settlement
- $140K
- As stated in Item 3
- Bankruptcy (Item 4)
- None
- Franchisor, parent, predecessor or officer
- Filing year
- 2022
- Disclosures cover the prior ten years
Extracted from the 2022 Franchise Disclosure Document
Item 3: litigation
360 Painting and CEO Paul Flick involved in 5 litigation matters. (1) 360 Painting LLC v. DeGregorio LLC (N.D. Ill. 2021): Breach of franchise agreement, personal guaranty, and fraud claims settled for $21,000 on 12/24/2021. (2) Deborah Carreno v. 360 Painting (S.D. Cal. 2019): Breach of implied covenant, misrepresentation, and unfair practices claims settled for $57,500 in 11/2021. (3) Leslie Owens Brown v. 360 Painting Inc. and Paul Flick (Maryland 2013): Unregistered franchise claim settled for $46,000 via consent order 10/10/2013. (4) MMG-360 LLC v. Paul Flick et al. (Ohio 2011): Fraud and breach of contract settled in 7/2013. (5) Maryland Securities Commissioner administrative proceeding (Case 2015-0477) initiated 2/23/2016 regarding franchise activities. No pending litigation or litigation against franchisees in last fiscal year.
Disclosure signals that moved the score
How this shows up in the verdict
- 8 litigation matters (affiliate/CEO) including 4 governmental actions
The verdict grade is FranchiseVerdict's editorial assessment across SBA loan performance, unit growth, revenue and disclosure signals. It is not investment advice.
Before you weigh a lawsuit
How to read Item 3
A franchisor must disclose pending actions and any material civil action involving the franchise relationship, plus convictions or civil judgments for fraud, unfair or deceptive practices, or franchise-law violations, going back ten years. A case the franchisor brought against a franchisee counts too. Item 3 does not include every dispute: settled claims below the materiality line and matters resolved in private arbitration can be absent.
Questions worth asking current and former franchisees, using the contact list in Item 20:
- Were you, or anyone you know in the system, party to a dispute with the franchisor?
- Was it resolved by settlement, arbitration or a court, and on what terms?
- Has the number of disputes gone up or down since you signed?